Correlation Between Algoma Steel and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Algoma Steel and Bragg Gaming at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Algoma Steel and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Algoma Steel Group and Bragg Gaming Group, you can compare the effects of market volatilities on Algoma Steel and Bragg Gaming and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Algoma Steel with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algoma Steel and Bragg Gaming.
Diversification Opportunities for Algoma Steel and Bragg Gaming
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Algoma and Bragg is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Algoma Steel Group and Bragg Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bragg Gaming Group and Algoma Steel is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Algoma Steel Group are associated (or correlated) with Bragg Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bragg Gaming Group has no effect on the direction of Algoma Steel i.e., Algoma Steel and Bragg Gaming go up and down completely randomly.
Pair Corralation between Algoma Steel and Bragg Gaming
Assuming the 90 days trading horizon Algoma Steel Group is expected to under-perform the Bragg Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Algoma Steel Group is 2.61 times less risky than Bragg Gaming. The stock trades about -0.43 of its potential returns per unit of risk. The Bragg Gaming Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 606.00 in Bragg Gaming Group on November 27, 2024 and sell it today you would earn a total of 124.00 from holding Bragg Gaming Group or generate 20.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Algoma Steel Group vs. Bragg Gaming Group
Performance |
| Timeline |
| Algoma Steel Group |
| Bragg Gaming Group |
Algoma Steel and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Algoma Steel and Bragg Gaming
The main advantage of trading using opposite Algoma Steel and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algoma Steel position performs unexpectedly, Bragg Gaming can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bragg Gaming will offset losses from the drop in Bragg Gaming's long position.| Algoma Steel vs. Algoma Steel Group | Algoma Steel vs. Champion Iron | Algoma Steel vs. Ero Copper Corp | Algoma Steel vs. West Fraser Timber |
| Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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